Business Checking Freedom Act of 2005

The Business Checking Freedom Act of 2005 (H.R. 1224) proposed to lift a long-standing federal ban that prevented banks from paying interest on business checking accounts. By repealing this prohibition, the bill would have allowed businesses of all sizes to earn a return on the funds held in their daily transaction accounts, similar to how individuals use personal interest-bearing checking accounts. Additionally, the legislation sought to allow the Federal Reserve to pay interest to banks on the cash reserves they are required to hold, while also increasing government oversight of bank fees through mandatory annual reports to Congress.